President William Ruto has ordered a two-year waiver on business permits for young entrepreneurs under the National Youth Opportunities Towards Advancement (NYOTA) programme, saying the government must remove obstacles that make it harder for young businesses to survive.
The directive came on Friday as the President launched the second phase of the NYOTA Enterprise Development Program at Nairobi’s Ulinzi Sports Complex, where the government committed Ksh3.06 billion to support 122,000 young people starting or expanding businesses.
President said many young entrepreneurs have demonstrated what they can achieve with limited financial support, but warned that administrative costs and regulations often slow their progress before their businesses become established.
“Having seen what these young entrepreneurs have achieved with modest support, the government of Kenya now has a responsibility to remove the barriers that still stand in their way. Success should never be constrained by unnecessary bureaucracy,” the President said.
He directed the Intergovernmental Budget and Economic Council to work with county governments to introduce a two-year business permit waiver for all NYOTA beneficiaries.
“Young businesses deserve to find their feet before they bear the full cost of compliance,” Ruto added.
The President also instructed the Ministry of Cooperatives and MSMEs Development to establish a national identification system for NYOTA beneficiaries. The system is expected to make it easier for participants to access government services, incentives and enterprise support programmes.
In another move aimed at helping businesses grow beyond the start-up stage, Ruto directed state-backed financing institutions, including the Youth Enterprise Development Fund, the Uwezo Fund and the Women Enterprise Fund, to develop a dedicated financing product for NYOTA graduates seeking additional capital.
“The first grant must never become the last opportunity,” he said. “As business grows, they require larger financing, better equipment, wider markets and stronger partnerships. So, we as government, must and will provide a clear pathway from startup to sustainable enterprise.”
The latest phase of the programme will see 88,934 beneficiaries who successfully invested their initial Ksh.25,000 grants receive a second instalment of the same amount, bringing their total support to Ksh.50,000.
A further 33,269 young Kenyans will receive their first Ksh.25,000 grants as they begin businesses under the initiative.
“We are engaging 122,000 young people today and we are going to fund them in a few hours. We are going to spend over Ksh.3 billion across Kenya,” the President said.
The NYOTA programme is one of the government’s flagship youth employment initiatives, combining seed funding with business training and access to finance. The latest measures signal an effort to lower the cost of starting a business while giving successful enterprises a clearer route to future funding.
Whether the permit waiver and expanded financial support translate into stronger, long-term businesses is likely to depend on effective coordination between the national government, county administrations and public financing agencies.
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